Strategic cycle: mission

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Introduction: mission

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Strategic mission

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The necessary mission components

With a focus on its MISSION, your company has to:

• create enterprise value
  • Enterprise value is a way to measure the value of your business as a whole. It takes into account not only the value of the company's assets, such as its buildings and equipment but also things like debt & any cash it has on hand and intangible resources, such as IP, reputation, installed base, etc.

• while, at the same time, being able to appropriate value
  • Value appropriation is how your company captures value created by its products or services. This can be done through various means, such as setting prices for products or services, charging fees for using a platform, or licensing intellectual property to others. By appropriating value effectively, your company can create value for itself, its shareholders, and other stakeholders.
• and build (business) capacity.
  • Your business' capacity refers to the maximum amount of goods or services you can produce or deliver within a given period. Capacity can be affected by several factors, such as the availability of raw materials, the efficiency of production processes, the availability of labour, and the capacity of equipment and facilities. When your business operates at or near its capacity, it can meet customer demand for its products or services. Still, it may struggle to handle a sudden increase in demand without expanding its capacity. On the other hand, when you are operating well below capacity, you may have an excess production capacity that is not being used, which could lead to inefficiencies and higher costs.

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Capacity is the core concept of a 'mission'-strategy

Capacity refers to the maximum amount or quantity something can hold, produce, or support. In the business context, capacity refers to the ability of your company or organisation to deliver goods or provide services. Capacity can be measured by the number of goods or services produced within a given time or the resources (e.g., machines, labour, raw materials) available to make them.

For example, a factory might have a capacity of 500 units per day, meaning that it has the resources and capabilities to produce 500 units of a particular product in a single day. Alternatively, a company might have a capacity of 10,000 customer service calls per day, meaning that it has the staff and infrastructure to handle 10,000 customer service calls in a single day.

Managing capacity effectively is vital for businesses because it can help optimise resource use and ensure that demand for goods or services can be met efficiently and effectively. This can involve adjusting capacity to meet changes in demand, investing in new technology or equipment to increase capacity, or finding ways to use existing resources more efficiently.

In addition to production capacity, the term "capacity" is used in other contexts, such as storage capacity (e.g., the maximum amount a storage facility or container can hold). Capacity for growth is the potential for an organisation to expand or increase its output).

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The results of the 'mission'-strategic flow

When your company invests tangible and intangible resources with its proper mission in mind, it tends to end up with the following:

• Capabilities and competencies when there is an outside-in mentality.
  • In the context of your business, capabilities refer to the things your company can do well, such as producing high-quality products, delivering excellent customer service, or innovating new technologies. Capabilities can also refer to your company's resources, such as its financial resources, physical assets, and human talent. Understanding and effectively leveraging your company's capabilities can be necessary for its success and competitiveness in the marketplace.
  • Competencies are the skills, knowledge, resources, and attributes that allow a person or part of your organisation to perform specific tasks or activities.
• or, capacity building when there is an inside-out mentality.
  • Your business' capacity refers to the maximum amount of goods or services you can produce or deliver within a given period. Capacity can be affected by several factors, such as the availability of raw materials, the efficiency of production processes, the availability of labour, and the capacity of equipment and facilities. When your business operates at or near its capacity, it can meet customer demand for its products or services. Still, it may struggle to handle a sudden increase in demand without expanding its capacity. On the other hand, when you are operating well below capacity, you may have an excess production capacity that is not being used, which could lead to inefficiencies and higher costs.

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Mission with an 'OUTSIDE-IN' (action) orientation

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Overview

In this situation,

• while cutomer value is what we hope for,
• enterprise value is the critical step, and
• more than we wish for, we are looking for (new) capabilities & competencies.

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OUTSIDE-IN strategic cycle in MISSION-mode

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Dynamic process view

1. First action (OUTSIDE).
   1. (Given the capabilities of the enterprise),
   2. the organisation starts with capacity building,
   3. followed by enterprise development.
2. Second focus (INSIDE).
   1. learnings from the products & services the aim is to
   2. increase internal capabilities & competencies.
3. The hope is
   1. that this cycle delivers in a natural way the correct customer value, but to make this hope come true,
   2. enterprise value is the critical step to shift the mindset from mission to vision.

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Linear process view

Mission, the outside-in (action) strategic cycle

Outside		Driver		Inside
Value creation
	↓	Vision	↑	Customer value = hope
Value appropriation
	↓	MISSION	↑	Enterprise value = critial step
DREAM 1. Capacity building		<<<<<<<
	↓	Tactics	↑	DO 4. Capabilities & competencies
ANALYSE 2. Organisational development
	↓	Strategy	↑	DECIDE 3. Products & services
		>>>>>>>

Dreaming, analysing, deciding and doing together form a complete thinking cycle.

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Areas of concern

Comming soon .

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Mission with an 'INSIDE-OUT' (focus) orientation

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Overview

In this situation,

• while organisational development is what we hope for,
• capabilities & competencies are critical, otherwise
• we end up with (continuous) capacity building

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INSIDE-OUT strategic cycle in MISSION-mode

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Dynamic process view

1. First focus (INSIDE).
   1. Mission-driven enterprises will try to convert enterprise value,
   2. quickly into customer value.
2. Second action (OUTSIDE).
   1. As a result, the organisations' value appropriation
   2. leads to a large capacity building (not necessarily a large competencies pool).
3. The hope is
   1. that this automaticaly leads enterprise development, with the trap of a disconnected 'strategy'
   2. therefor, to restart the mission cycle, capabilities & competencies are the critical step.

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Linear process view

Mission, the inside-out (focus) strategic cycle

Outside		Driver		Inside
		<<<<<<<
	↓	Vision	↑	ANALYSE 2. Customer value
DECIDE 3. Value appropriation
	↓	Mission	↑	DREAM 1. Enterprise value
DO 4. Capacity building		>>>>>>>
	↓	Tactics	↑	Capabilities & competencies = critial step
Organisational development = hope
	↓	STRATEGY	↑	Products & services
Value creation

Dreaming, analysing, deciding and doing together form a complete thinking cycle.

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Areas of concern

This is the exact opposite of 'Tactics with an 'OUTSIDE-IN' orientation' (see higher). The two systems facilitate a clear divide between operations and business.

Business starts here from

1. capacity & competences
2. to create enterprise value
3. to start with value appropriation
4. and capacity building

and takes the tactical turn to start the cycle over and over again

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General concern

Comming soon

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